Prudential “Hong Kong Family Critical Illness Resilience Survey” reveals over 70% of respondents opt for private hospital care, yet their critical illness protection gap is close to HK$1.2 million per person

• Several new-to-market protection specially designed for newborn child, juvenile and expectant moms, including Severe Newborn Jaundice Benefit, Severe Eczema, Severe Urticaria and Postpartum Depression

• Unique-in-market Lifelong Annuity for Severe Dementia or Parkinson’s Disease

• Unique-in-market Renewed Life Protection Benefit with 100% life protection after the first Major Disease Benefit claim

(1 June 2023, Hong Kong) More than two thirds of survey respondents in Hong Kong worry that they (71%) or their children (89%) may be diagnosed with a critical illness and, while the majority have critical illness insurance, almost three quarters believe it will be insufficient to cover the high medical costs, according to the new “Hong Kong Family Critical Illness Resilience Survey”¹ released today by Prudential Hong Kong Limited (“Prudential").

The new findings highlight the public’s health anxieties across all life stages and provide a backdrop for Prudential’s brand-new PRUHealth Guardian Critical Illness Plan Series, which also launched today to coincide with Global Day of Parents and International Children’s Day.

Of the 60% of respondents with a critical illness protection, 74% said they think their existing medical protection is inadequate. Moreover, about a third (34%) could not recall the types of critical illness covered by their policies. It is a situation that ups the urgency to boost public’s resilience by protecting their families from critical illness.

Private healthcare for critical illness much desired, but considered too costly

When it comes to the fear of being diagnosed with critical illnesses, the most frequently mentioned illnesses were cancer (52%), cardiovascular disease (37%) and dementia or Parkinson’s Disease (25%).

In Hong Kong, roughly 25% of men and 20% of women are diagnosed with cancer before reaching the age of 75², while 10% of those aged between 30 and 74 years are likely to suffer from cardiovascular disease over the next 10 years.³Noteworthy too is the incidence of stroke among young adults has risen a remarkable 30% in the past 20 years.⁴

If diagnosed with a critical illness, close to three quarters of those surveyed (74%) said they would prefer to be treated at a private hospital. Yet regardless of whether they have critical illness protection or medical coverage in place, they are concerned that they may not be financially prepared for the medical fees of private doctors.

The survey results, supported by Prudential’s annual Claims Report and latest data on medical treatment costs from EC Healthcare⁵, indicate that the respondents have sufficient funds for only about 40% of their protection needs, with their critical illness protection gap per person estimated to be as much as HK$1.18 million. As well, only 49% have purchased critical illness or medical insurance for their spouse and just 28% for their parents. It means that if a family member is diagnosed with a critical illness, the family would face severe financial pressure and possibly a long-term decline in their quality of life.

“People in Hong Kong are increasingly looking to identify the early onset and potential risks of critical illnesses through health checks or genetic tests. There was a time when they could suffer from multiple critical illnesses that would frequently prove terminal, but now those critical illnesses can very often be cured. However, protracted medical treatment can lead to soaring medical expenses,” said Priscilla Ng, Chief Marketing and Partnership Distribution Officer at Prudential Hong Kong Limited. “We are at a juncture where people have higher expectations for the quality of medical care, yet they are unable to afford private care. Insufficient safeguards against these risks are a genuine concern.”

Critical illness and congenital diseases afflicting their children worry parents

Close to 90% of parents and parents-to-be worry about their children being diagnosed with a critical illness (89%). The illnesses most commonly cited are respiratory diseases (40%), such as asthma and pneumonia; dermatological diseases (38%), such as severe eczema or severe urticaria; and autoimmune diseases (30%). Roughly a fifth of the parents surveyed said they lacked the financial resources to cover their children’s critical illness medical fees.

Among respondents planning to have a child in the next five years, 63% said they worry about their babies being diagnosed with congenital diseases, while 57% worry about suffering from postpartum depression. Studies show that six out of every 10 babies are diagnosed with jaundice⁶, and one in 10 mothers with newborns experience postpartum depression.⁷

New critical illness plan series serve all life stages including pregnancy

“Today we launch the PRUHealth Guardian Critical Illness Plan Series to help customers fill their critical illness protection gap, giving access to comprehensive multi-claim critical illness solutions specifically designed to meet the different protection needs of our customers at every stage of life,” added Ng. “We know children are their parents’ utmost priority. At Prudential, we strive to be a strong line of support for parents. With our market-first juvenile protection and also a tailor-designed plan for expectant mothers, customers can even start preparing for their unborn children. The series is a manifestation of lifelong love and protection.”

The brand-new PRUHealth Guardian Critical Illness Plan is a comprehensive multi-claim critical illness protection and life cover for all stages in life, which also doubles as a solution for long-term savings. The new plan includes multiple cover for 127 disease conditions that span juvenile⁸ (including the market-first protection covering Severe Eczema and Severe Urticaria), early-stage and major diseases.

The new plan offers a unique-in-market lifelong annuity for severe dementia⁹ or Parkinson’s Disease (6% of the basic sum assured each year). Even a year after customers have claimed the first major disease benefit, they are still entitled to 100% life protection.

Along with Prudential’s free value-added services, customers can concentrate on treatment and recovery with peace of mind. With the SmartAppoint Service, customers can assign their family members in advance to access claims in case if they become mentally incapacitated, while those diagnosed with critical illness can seek second medical opinions via Treatment Sure.

The PRUHealth Baby Guardian Critical Illness Plan is designed for expectant mothers , who can apply at their 22nd week of pregnancy and beyond, to cover their unborn children immediately from birth with seamless and comprehensive protection. In addition to the protection offers by PRUHealth Guardian Critical Illness Plan, it also provides first-in-market offerings of the Severe Newborn Jaundice Benefit¹⁰ and Postpartum Depression Benefit¹¹.

Prudential’s 175th Anniversary “175% Enhanced Protection” Promotional Offer

To celebrate the 175th anniversary of Prudential, customers who take out PRUHealth Guardian Critical Illness Plan Series can enjoy an extra protection in the promotion period from now through to 30 September 2023. The existing 50% extra major disease and life protection for the first 10 policy years under Benefit Booster will be upgraded to 75%, giving customers a total of 175% enhanced protection without any additional premiums. Customers can also enjoy up to 30% premium refund upon taking out selected critical illness plans before 30 June.

For more information about the insurance plans and promotional offers, please refer to the terms and conditions on the official website of Prudential Hong Kong Limited.

¹ Prudential conducted an online survey in April 2023, where a total of 500 Hong Kong citizens were interviewed. The aim is to investigate the critical illness protection gap of people in Hong Kong and explore their expectations on coverage for individuals, children and parents

² Cancer Online Resource Hub: Overview of Cancer Statistics in Hong Kong

³ Non-Communicable Diseases Watch, September 2018, Centre for Health Protection, Department of Health, Hong Kong SAR: Overview of Cardiovascular Diseases

⁴ According to clinical data analysis by researchers at the Stroke Research and Prevention Group, Department of Medicine, School of Clinical Medicine, LKS Faculty of Medicine, The University of Hong Kong: https://www.med.hku.hk/en/news/press/20221027-increase-in-young-stroke  

⁵ EC Healthcare is Hong Kong’s largest non-hospital health services provider

⁶ UK National Health Service: https://www.nhs.uk/conditions/jaundice-newborn/

⁷ Family Health Service, Department of Health, Hong Kong SAR: https://www.fhs.gov.hk/english/mulit_med/mulit_med.html

⁸ At least 3 consecutive days of medically necessary hospitalisation for treatment of a primary diagnosis of the respective disease condition.

⁹ Score 10 or below in the Mini Mental State Examination.

¹⁰ Only applicable to hospital stays of at least 5 consecutive days of inpatient phototherapy, for treatment of newborn jaundice. Baby born before 37 weeks of gestation is specifically excluded.

¹¹ Receive at least 6 sessions of cognitive behavioural therapy within 6 months from the date of diagnosis.

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Disclaimer

PRUHealth Guardian Critical Illness Plan Series is underwritten by Prudential Hong Kong Limited. This document does not contain the full terms and conditions of this plan and is for reference only. You should read carefully the risk disclosures and key exclusions (if any) contained in the product brochure. For further details and the terms and conditions of this plan, customers can ask Prudential for a sample of the policy document. This document is for distribution in Hong Kong only. It is not an offer to sell or solicitation to buy or provide any insurance product outside Hong Kong. Prudential does not offer or sell any insurance product in any jurisdictions outside Hong Kong where such offering or sale of the insurance product is illegal under the laws of such jurisdictions.

About Prudential Hong Kong Limited

Prudential has been serving the people of Hong Kong since 1964. Through Prudential Hong Kong Limited and Prudential General Insurance Hong Kong Limited, we provide a range of financial planning services and products including individual life insurance, investment-linked insurance, retirement solutions, health and medical protection, general insurance, and employee benefits.
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